House Price Report December 2022

Property market data: Key points    

  • During October-December 2022, the average selling price of property across Edinburgh, the Lothians, Fife, and the Borders rose 6.8% year-on-year to £291,023. 
  • Sales volumes dropped 13.7% annually during this period, while new property listings decreased by 4.3% 
  • The median selling time of property was 18 days, highlighting that buyers were acting quickly to secure their next home. 
  • On average, 87.7% of properties sold for their Home Report valuation or higher, with the average property achieving 105.9% of Home Report valuation at sale. 
  • 28.2% of properties went to a closing date. 

Strong interest in buying and selling 

The period of October-December 2022 takes in all of the recent significant changes in the financial market – interest rates increasing to 3.5%, the rising cost-of-living and changes to energy bills – giving us some indication of the impact on the Scottish property market. 

However, the latest data from ESPC highlights that we continue to see strong interest in home buying and selling with quick selling times and high levels of the Home Report valuation being achieved although evidence of a cooling within the market from the post-pandemic highs is starting to show. 

Between October and December 2022, new property listings in Edinburgh, the Lothians, Fife, and the Borders were down by 4.3% year-on-year.  While this is recorded as a year-on-year decline, it does in fact take us to the same new property listing volumes recorded in the same period in 2019, indicating that this is more likely a return to the norms witnessed before the post-pandemic market increases. 

There was a significant rise in new property listings in Bonnyrigg in Midlothian and South Queensferry (an increase of 59.3% and 81% year-on-year respectively). 

In terms of property sales, volumes across Edinburgh, the Lothians, Fife and the Borders reduced by 13.7% annually, with localised rises and falls in sales volumes highlighting regionalised variations in the property market. Leith and Dunfermline recorded the highest volumes of property sales from ESPC data, closely followed by Corstorphine. 

Buyers keen to secure their next home 

Despite the recent political and economic changes, owning a home is a good long-term investment and demand for quality local housing stock remains, albeit at a calmer pace than has been seen recently.   

Buyers were still keen to secure their next home between October and December 2022, with the average selling price of property across Edinburgh, the Lothians, Fife, and the Borders increasing 6.8% year-on-year to £291,023. 

Dunfermline and East Fife recorded some of the highest price increases over the last three months. The average selling price for homes in Dunfermline was £228,514, an increase of 14.8% annually, while property in East Fife had an average selling price of £301,326, up 14.1% year-on-year. 

The City of Edinburgh saw average property selling prices rise 5.6% annually to £306,013. Following high demand for properties in the past year, two-bedroom flats were popular with Edinburgh buyers.   

Many areas popular with families saw rises in average selling prices, with three-bed houses in Blackhall, Davidsons Mains and Silverknowes increasing by 12.0% to £492,781 and three-bedroom houses in South Queensferry and Dalmeny increasing by 21.4% to £324,128.  

Areas in the Capital that are in demand with first-time buyers also saw rises in average selling prices. The average selling price of one-bedroom flats in Abbeyhill and Meadowbank increased by 10.7% to £185,763. 

The average selling price of two-bed flats in Portobello and Joppa continued to be popular, increasing by 14.1% to £302,970.  

Home Report valuations still exceeded though at slightly a slower rate 

In October-December 2022, properties attained 105.9% of their Home Report value on average – 0.6% lower than the same period last year. Considering that 87.7% of properties sold for at least their Home Report valuation (up 1.4 percentage points annually) this further highlights the competitive nature that is still prevalent in the property market in Edinburgh, the Lothians, Fife and the Borders.   

East Lothian properties attained the most over Home Report valuation, with properties achieving 108.5% of their valuations on average – 2.6 percentage points lower year-on-year. 

This was followed by East Fife where the percentage of Home Report valuation attained was 106.5% (a 2.1 percentage points decrease year-on-year).  

Midlothian properties achieved 106% of their valuations on average – a decline of 0.7 percentage points annually. 

The City of Edinburgh continued to be a desirable place to live with the area experiencing no percentage change in Home Report valuation with the average remaining at 105.6%.  

This is positive news for buyers – in the past year we’ve seen some properties sell upwards of 10% over Home Report value and this cooling of the market means those who have been waiting to see how the market pans out may be encouraged to come forward. 

Property market remains competitive with offers accepted quickly 

The property market in Edinburgh, the Lothians, Fife and the Borders market continued to move quickly in the last quarter of 2022 with buyers facing strong competition. 

The changing economic market and mortgage product availability will likely impact selling times in the coming months, but evidence from the last three months indicates the initial moves in this direction, however, there is clearly still confidence in the market and a strong desire to secure the right property.  

The median time for properties to go under offer was 18 days, two days slower than the previous year. 

Homes went under offer the fastest in East Lothian, West Fife and Kinross and West Lothian in a median time of 14 days. Meanwhile, properties in Midlothian also performed strongly, with a median selling time of 16 days.  

Looking at Edinburgh specifically, homes sold the fastest in the west of the city with a median selling time of 16 days. When analysing specific housing types, three-bed houses in Corstorphine sold quickest, in 13 days. 

What does it all mean? 

Paul Hilton, CEO of ESPC, explains: “The period of October-December 2022 has brought significant changes politically and in the financial markets. 

“In 2023 we will see the full effects of these changes but the property market in Edinburgh, the Lothians, Fife and the Borders remains robust and competitive with buyers currently continuing to pay significantly over Home Report value to secure their dream home. 

“We are seeing noticeable demand for areas in Edinburgh that are popular with a range of buyers. Abbeyhill and Meadowbank have seen considerable demand from first-time buyers while South Queensferry and Dalmeny are popular with those looking for family homes. 

“There has also been interest in suburbs like Corstorphine which are popular with families, and rural locations like the Scottish Borders – continuing the 2022 trend of buyers moving to areas outside Edinburgh with good transport links to the Captial. 

“If you are thinking of buying or selling in 2023 it is never too early to talk to your solicitor estate agent. ESPC solicitor estate agents are up to date with what is currently happening in the local market and have the skills and expertise to provide the guidance and support you need.”   

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